India's Growth Surge: Aiming for 7.5% GDP with Reforms

India's potential growth rate could reach 7.5% in the coming years through enhanced manufacturing, exports, and reforms, according to Chief Economic Advisor V Anantha Nageswaran. The Economic Survey 2025-26 raises the potential GDP growth forecast to 7%, with key initiatives and reforms supporting this trajectory.

India could see its potential growth rate increase to 7.5% in the near future by focusing on boosting manufacturing, exports, and implementing process reforms, said Chief Economic Advisor V Anantha Nageswaran. The Economic Survey 2025-26, presented in Parliament, has already raised the GDP growth forecast to 7%.

The survey outlined that achieving competitiveness in manufacturing and exports, along with reforms in land and cost subsidization, could push growth beyond 7% to 7.5% or even 8% in the medium term. Recent momentum in reforms has been evident across sectors, with manufacturing initiatives like the Production-Linked Incentive schemes and liberalization of FDI playing key roles.

The Economic Survey projected GDP growth between 6.8-7.2% for the next fiscal year, acknowledging stable economic footing despite a depreciating rupee. The survey also noted the undervaluation of the rupee provided benefits to exports against higher American tariffs, though it prompted caution from investors.